ATO bean counters target coffee's cash economy

Coffee shops, soldiers and plasterers will be among those under special scrutiny by the Australian Tax Office for their activities over the last financial year.

The ATO compliance program monitors small business, big business and individual tax returns for evasion, avoidance and other criminal behaviour.

Taxation Institute of Australia spokesman Robert Jeremenko says coffee shops will be under the microscope because they operate largely on a cash economy.

"The Tax Office will be matching up data that it has from coffee traders and the coffee bean suppliers and making sure that cafe operators are not skimming off income and not reporting the correct amount," he said.

He said tradesmen, particularly plasters, and soldiers will also be targeted.

"Having reported some details from the recent Queensland floods, the tax office has noticed that [plastering] is a particular industry that they need to have a look at," he said.

"They will be focusing on to make sure that all of the income is recorded and expenses aren't inflated.

"With the Defence Forces it is mainly work-related expenses and the tax office is saying that it is a particular industry that has a tendency to have a high claim for work-related expenses."